Pump-jack mining crude oil with the sunset
Oil

Oil Prices Flat on Potential Reserve Releases, Rising Covid Cases

Amid a shortened holiday week, energy stocks are set to open mixed to higher, supported by gains in the broader index futures while oil prices trade near the flat line. News flow is quiet heading into the Thanksgiving holiday.

SECTOR COMMENTARY:

Amid a shortened holiday week, energy stocks are set to open mixed to higher, supported by gains in the broader index futures while oil prices trade near the flat line. News flow is quiet heading into the Thanksgiving holiday.

Oil prices are flat as daily covid cases in Europe rise and a potential release of Japanese oil reserves raised concerns about both oversupply and weak demand. Investors sought safe havens such as the dollar early in the session, contributing to the sharp decline in oil prices. Reports this morning indicate the President could make comments regarding oil/gasoline prices sometime tomorrow.

Natural gas futures are down 5.4% to $4.789, as forecasts coming out of the weekend indicate warmer weather for a large majority of the L48 the first week of December.

BY SECTOR:

US INTEGRATEDS

No significant news.

INTERNATIONAL INTEGRATEDS                                           

According to ReutersEni could list more than 30% of its new retail and renewables business in what is likely to be one of Italy's biggest initial public offerings next year, sources said. The company said last month it had opted to list a minority stake in the unit to help it fund its shift away from oil and gas. It will present its plans for the business, which includes renewable power generation and energy sales to customers, later on Monday. Eni is looking to float between 25% and 30% but it could sell a bit more if market demand is there, one of the sources said. 

Petroleo Brasileiro said in a statement on Friday that it will not be able to supply all the orders from fuel distributors in December, due to high demand, Reuters reported. The company, known as Petrobras, said there are dozens of local firms able to import fuel and meet additional December demand. It added that its refineries are running at 87% capacity so far in November. Last month the company made a similar announcement saying it would be unable to meet all orders for November.

CANADIAN INTEGRATEDS

No significant news.                       

U.S. E&PS

No significant news.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

KBR announced that it has been awarded a three-year contract by Dyno Nobel to provide digital plant performance monitoring and advisory services for its ammonia plant in Waggaman, Louisiana.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

U.S. stock index futures rose as energy and bank stocks recovered slightly from last week's losses, although anticipation of several economic readings this week kept gains in check. European shares rose as Italy's Telecom Italia led a rally in the telecoms sector. Japan's Nikkei ended slightly higher as investors bought cheaper stocks, while gains in semiconductors and new-energy shares pushed China stocks higher. The euro struggled on growing concerns over the impact of new COVID-19 restrictions in Europe. Gold prices slipped, pressured by a firmer dollar and prospects of a faster Federal Reserve taper. Oil prices fell on rising concerns about economic growth and a potential release of Japanese oil reserves. Existing home sales numbers are scheduled for release later in the day.


Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner


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